RBL Bank posts 37% rise in Q4 PAT to ₹271 cr, declares dividend; provisions decline sharply
Mumbai-headquartered private sector lender, RBL Bank registered a 37% YoY growth in net profit to ₹271 crore for the quarter ending March 31, 2023. The growth in PAT was 30% on a quarter-on-quarter basis. However, the bank saw single-digit growth in interest income but witnessed a sharp decline in provisions sequentially. While its asset quality continued to improve.
RBL Bank’s net profit was at ₹198 crore in Q4FY22 and ₹209 crore in December 2022 quarter.
Net interest income (NII) which is the difference between interest earned and expended, came in at ₹1,211 crore — recording a 7% YoY and 5% QoQ growth. The net interest margin for the quarter stood at 5.01%.
Provisions dropped by 41% to ₹235 crore in Q4FY23 compared to ₹401 crore in Q4 of the previous fiscal. The decline was 20% from provisions of ₹293 crore witnessed in Q3FY23.
In the case of asset quality, gross non-performing assets (GNPA) declined to 3.37% in Q4FY23 compared to 3.61% in Q3 of the similar fiscal. In Q4 of FY22, the gross NPA stood at 4.40%.
Net NPA also dipped to 1.10% in Q4FY23 versus 1.18% in Q3FY23 and 1.34% in Q4FY22.
RBL’s total deposits grew by 7% YoY and 4% QoQ to ₹84,887 crore. CASA posted 14% YoY and 6% QoQ growth to ₹31,717 crore, while the CASA ratio stood at 37.4% in the quarter under review. The bank’s retail deposits zoomed by 18% YoY and 4% QoQ to ₹36,319 crore.
In regards to the loan book, net advances outpaced deposits with a growth of 17% YoY and 5% QoQ to ₹70,209 crore. Under this, retail advances surged 21% YoY and 8% sequentially to ₹37,778 crore, while retail disbursements climbed to ₹4,391 crore.
Further, the bank garnered a whopping 86% YoY growth in housing loans. While the lender’s rural vehicle finance crossed the ₹1000 crore mark milestone.
In this quarter, the bank issued 5.5 lakh credit cards — -taking the total outstanding to 4.4 million cards.
Total customers jumped to 12.91 million — an increase of 16% in the last financial year.
Overall, RBL Bank is well-capitalized with sound liquidity. The bank’s overall capital adequacy was 16.9% and the Common Equity Tier 1 ratio was 15.3%. Average Liquidity Coverage Ratio at 126%.
Apart from this, in a meeting held on Saturday, RBL Bank’s board members declared a dividend of ₹1.50 per equity share having a face value of ₹10 each (15%) to be payable subject to the approval of the shareholders of the bank at their ensuing Annual General Meeting (“AGM”).
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.